STAND. COM. REP. 1146
Honolulu, Hawaii
, 2003
RE: S.B. No. 354
S.D. 2
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2003
State of Hawaii
Sir:
Your Committee on Energy and Environmental Protection, to which was referred S.B. No. 354, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO ENERGY,"
begs leave to report as follows:
The purpose of this bill is to support energy conservation by:
(1) Extending tax credits for heat pumps and ice storage systems to heat pumps and ice storage systems that are installed and placed in service before July 1, 2008; and
(2) Changing the amounts of the tax credits for heat pumps and ice storage systems to unspecified amounts.
Scheibert Energy Company, Life of the Land, Plumbers and Fitters Union Local 675, Off-Peak/Elite Energy Group, LLC, The Trane Company, Powerlight Corporation, Hawaii Solar Energy Association, Inter-Island Solar Supply, Economy Plumbing and Sheet Metal, Inc., Plumbing and Mechanical Contractors Association of Hawaii, Elite Mechanical, Inc., Subcontractors Association of Hawaii, American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc., Building Industry Association of Hawaii, and Iolani School testified in support of this measure. The Department of Business, Economic Development, and Tourism,
Hawaiian Electric Company, Inc., Hawaii Electric Light Company, and Maui Electric Company offered testimony in support of the intent of this measure. Tax Foundation of Hawaii, Department of Taxation, The Gas Company, Hess Microgen, and two concerned citizens offered comments.
Your Committee finds that this measure is necessary to increase the State's energy self-sufficiency by encouraging residents and businesses to invest in energy-efficient technologies and technologies that reduce demand during times of peak electricity usage.
Your Committee has amended this measure by:
(1) Extending the tax credits for heat pumps and ice storage systems to heat pumps and ice storage systems that are installed and placed in service before July 1, 2007, instead of July 1, 2008;
(2) Deleting the unspecified amounts for the tax credits for the following heat pumps and restoring the existing amounts for those credits:
(A) For heat pumps in single-family residential buildings, the credit shall be in an amount not to exceed 20 per cent or $400 whichever is less, of the actual cost of the heat pump; and
(B) For heat pumps in multiunit buildings used primarily for residential purposes, the credit shall be in an amount not to exceed 20 percent or $200 per building unit, whichever is less, of the actual cost of the heat pump;
(3) Specifying that the tax credit for heat pumps in hotel, commercial, and industrial facilities shall be in an amount not to exceed 20 percent or $500,000, whichever is less, of the actual cost of the heat pump;
(4) Specifying that the tax credit for ice-storage systems shall be in an amount not to exceed 20 per cent or $500,000, whichever is less, of the actual cost of the ice storage system; and
(5) Establishing that state tax credits for wind energy systems, solar energy systems, heat pumps, and ice storage systems shall be reduced by the amount of any federal utility rebates.
As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 354, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 354, S.D. 2, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Energy and Environmental Protection,
|
____________________________ HERMINA M. MORITA, Chair |
||